InvestMacro

By Admiral Markets

Source: Economic Events May 27, 2020 – Admiral Markets’ Forex Calendar

Gold remains bullish after pushing to new yearly highs last week. Nevertheless, the short-term (and the technical bearish divergence in the RSI(14) on a daily time-frame) catches our interest, making us believe that a stint in the near-term below 1,700 USD is an option.

On the other hand, and as long as we trade above 1,660 USD, we rather expect a coming stint to the all-time high of around 1,920 USD.

The economic calendar is quite thin this Wednesday, with only the speech from Fed member and St. Louis Fed president Bullard could be of interest, even though, in our opinion, it seems unlikely that their rhetoric will massively diverge from recent comments from Fed chairman Powell.

In front of the US congress on May 13, Powell testified that the Fed will do everything and flood markets with trillions of US dollar if necessary to avoid a collapse of the US economy which were underlined in Powell’s appearance on CBS “60 Minutes” where he said “In the long run and even in the medium run, you wouldn’t want to bet against the American economy” while acknowledging that the unemployment rate could hit as high as 25%.

That in mind and if we get to see a sustainable drop in 10-year US Treasury yields below 0.60% in the days to come leaves us with a bullish expectation and a target around 1,920, as initially already said, as long as we trade above 1,660 USD:

Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between February 25, 2019, to May 26, 2020). Accessed: May 26, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.

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Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations.
4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
7. Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.

Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks

By Admiral Markets

By TheTechnicalTraders 

– Our research team has become increasingly concerned that the US Fed support for the markets has pushed price levels well above true valuation levels and that a risk of a downside price move is still rather high.  Recently, we published a research article highlighting our Adaptive Dynamic Learning (ADL) predictive modeling system results showing the US stock market was 12% to 15% overvalued based on our ADL results.  Today, Tuesday, May 26, the markets opened much higher which extends that true valuation gap.

We understand that everyone expects the markets to go back to where they were before the COVID-19 virus event happened – and that is likely going to happen over time.  Our research team believes the disruption of the global economy over the past 70+ days will result in a very difficult Q2: 2020 and some very big downside numbers.  Globally, we believe the disruption to the consumer and services sector has been strong enough to really disrupt forward expectations and earnings capabilities.  We’ve been warning our friends and followers to be very cautious of this upside price trend as the Fed is driving prices higher while the foundations of the global economy (consumers, services, goods, and retail) continue to crumble away.

Our biggest concern is a sharp downside rotation related to overvalued markets and sudden news or a new economic event that disrupts forward expectations.  Obviously, Q2 data will likely be a big concern for many, yet we believe something else could act as a catalyst for a reversion event.  Possibly global political news?  Possibly some type of extended collateral damage related to the global economy? Possibly something related to earnings expectations going forward through the rest of 2020 and beyond?  We believe things are not “back to normal” at this stage of the recovery and we believe the markets are moderately over-extended at this time.

Before we continue, be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!

ES ADL PREDICTIVE MODELING WEEKLY CHART

This Weekly ES (S&P500 E-Mini Futures) chart shows our ADL predictive modeling system’s expected future price level targets which suggest the current market price level is 12% to 15% (or more) above these target levels. Remember, the ADL system uses a custom price mapping technology that is designed to identify “price/technical DNA markers” within historical data – then attempt to map out future price level activity and track the highest probable outcomes of these price DNA markers.  The objective of this research tool is to show us what type of price activity is highly probable based on historical data and predictive modeling research.  This unique trigger on the ES chart consisted of 5 historical DNA markers and suggests a future probability of 70% to 87% regarding future price target levels.

One aspect of our research while using the ADL predictive modeling system and our other tools it the concept of “price anomalies”.  These are rallies or sell-offs that extend beyond support or resistance levels and when price levels trend away from ADL predicted target levels.  We created the term “price anomaly” and explain it to our members as “some external force is pushing the price above or below the projected target level.  Once this force abates or diminishes, the price will likely move, very quickly, to levels near the ADL predicted target levels.”.

Currently, the US Fed is engaging in a moderate support effort for the US stock market and it is reportedly buying $5+ billion a day in bonds and assets.  Although it may seem impossible to fight the fed, we believe the markets (like nature) are almost impossible to fool and control.  We believe that price will react to market conditions and that future price rotation (both up and down) will continue to be more volatile than many traders expect.

CUSTOM VOLATILITY INDEX WEEKLY CHART

This Custom Volatility Index chart highlights the extremely low levels recently established by the COVID-19 market sell-off.  These new low levels have created the deepest sell-off levels on this chart in 20+ years.  It has also established a new, highly volatile, downward price channel that our researchers are following to help us determine where resistance will likely be found.

We believe a new downward price rotation is setting up for some time in the near future that will establish a tighter price channel and assist us in determining when and where the ultimate price bottom will setup and complete.  With the VIX levels still near 27~29, we are certain that volatility has not decreased even though price levels have attempted a solid recovery over the past 8+ weeks.

CUSTOM SMART CASH INDEX WEEKLY CHART

This Weekly Custom Smart Cash Index chart highlights the true function of price within the US stock market and highlights the overall weakness still at play within the current markets.  Even though the NQ has rallied to near all-time highs, the Smart Cash Index is showing the broader market is still rather weak and that recent price activity has stalled into a sideways/flag formation.  The broader market buying that took place near the end of March 2020 and throughout April 2020 has stalled.  The Fed became the market for the past 8+ weeks and as the Fed diminishes its activity, it will be up to the markets to manage trends and future expectations going forward.

Our researchers are concerned that a sudden breakdown in the Smart Cash index may prompt a bigger downside price move in the global markets.  Our research team has continued to issue warnings to our members to run protective stops on any open long positions, to properly size trades to avoid excessive risks and to properly hedge your trading using precious metals, miners, and Bonds.  In short, these risks are very real.  You can still make a profit trading the long side of the markets, but we suggest that you take all the necessary steps to protect your trades.

CUSTOM US STOCK MARKET INDEX WEEKLY CHART

This last Weekly Custom US Stock Market chart highlights two very important levels related to our Fibonacci Price Amplitude Arcs.  These arcs represent critical Fibonacci support and resistance levels that arc across time and price levels.  It is important to understand these levels will present very real inflections in price – at least we expect them to create price inflections.

Currently, there is the YELLOW Fibonacci price arc that is acting as resistance near the current highs and the MAGENTA Fibonacci price arc that is much longer-term.  This longer-term Fibonacci price arc may be stronger than the current shorter-term arc.  Our researchers believe the current Fibonacci arc levels on this chart will prompt price to “flag out” in a sideways price channel before potentially breaking downward.

As we continue to watch for weakness across these charts and trends, we urge skilled technical traders to be prepared for a sharp spike in volatility over the next 4+ weeks.  It appears we are only 2 to 4+ weeks away from reaching these major price inflection points.  Currently, we believe a downside move is the most probable outcome based on our ADL predictive modeling system results as well as the technical patterns seen on these charts.

Overall, we believe the increased volatility levels in the US stock market will present some incredible trading opportunities for technical traders.  Big swings, near-perfect technical patterns and setups, quick profits, and broader sector rotations.  This is the type of market where skilled technical traders can really enjoy a target-rich environment.  We just have to be selective in how we determine when to enter trades and to not take excessive risks.

I’m offering you the chance to learn to profit, as I do with my own money, from market trends that I hand-pick for my own trading.  These are not wild, crazy trades – these are simple, effective, and slower types of trades that consistently build wealth.  I issue about 4 to 8+ trades a month for my members and adjust trade allocation based on my proprietary allocation strategy– the objective is to gain profits while managing overall risks.

You don’t have to spend days or weeks trying to learn my system.  You don’t have to try to learn to make these decisions on your own or follow the markets 24/7 – I do that for you.  All you have to do is follow my research and trading signals and start benefiting from my research and trades.  My new mobile app makes it simple – download the app, sign in and everything is delivered to your phone, tablet, or desktop.

I offer membership services for active traders, long-term investors, and wealth/asset managers.  Each of these services is driven by my own experience and my proprietary trading systems and modeling systems.  I have a small team of dedicated researchers and developers that do nothing but research and find trading signals for my members.  Our objective is to help you protect and grow your wealth.

Please take a moment to visit TheTechnicalTraders.com to learn more.  I can’t say it any better than this…  I want to help you create success while helping you protect and preserve your wealth – it’s that simple.

Chris Vermeulen
Chief Market Strategist

TheTechnicalTraders.com

Investing in other businesses has never been easier for those who have the resources and know-how necessary to do so. But investing is not a get rich quick scheme, and it isn’t even guaranteed to make you money in the long-run. Before you pull the trigger on any business investment, it is vital that you do your due diligence and know exactly what you are getting into. Here are three tips for first-time investors looking to minimize their risks.

Make Sure the Business is Properly Insured

Business insurance provides businesses with essential financial protection against the most common liabilities that they face. For example, business insurance can protect policyholders from the liabilities they would face from an employee or customer injuring themselves while on company property. There is also data breach insurance to protect businesses from liabilities arising from data breaches.

Ensuring that a business is adequately insured before you invest in it will help to avoid any nasty surprises down the line. You don’t want to sink your cash into a business that ends up going broke because of its legal liabilities. You can check out insurance for business owners from The Hartford, whose site will enable you to see what kind of business insurance is available in your state and what sort of price you can expect to pay. If the business that you want to invest in doesn’t have insurance in place, this is something that you can quickly remedy with them.

Check Out Who is Behind the Business

You can learn a lot about a business by looking at its balance sheet. However, this will only tell you half the story. To fully appreciate the implications of a balance sheet, you need to know who the key people involved in managing the business are. Depending on their background, skills, and knowledge, they might be valuable assets that are sure to enhance the value of the business on the whole.

Take the time to get to know the people that you will be going into business with. Find out as much as you can about their individual backgrounds and their histories as entrepreneurs. If you have doubts about their ability to use your investment wisely, approach them with caution.

Check Out Their Prospectus and Business Plan

Reviewing dry business documents is rarely fun. However, if you are serious about starting a career in investing, then you are going to have to learn to love this part of the process. A business’s prospectus will provide you with valuable insight into the way that a company is run. Obviously, this is useful information to have as an investor. After all, you want to know that the business you are putting your money in to has a plan for what to do with it.

Investing in your first business should be a significant milestone in your professional life and, ultimately, a cause for celebration. But an investment that goes bad can have catastrophic effects on your finances. Make sure that you do your homework and don’t invest until you have done your due diligence.

By Taylor Wilman

By Ilan Noy, Te Herenga Waka — Victoria University of Wellington

Since the Indian Ocean tsunami of 2004, disaster recovery plans are almost always framed with aspirational plans to “build back better”. It’s a fine sentiment – we all want to build better societies and economies. But, as the Cheshire Cat tells Alice when she is lost, where we ought to go depends very much on where we want to get to.

The ambition to build back better therefore needs to be made explicit and transparent as countries slowly re-emerge from their COVID-19 cocoons.

The Asian Development Bank attempted last year to define build-back-better aspirations more precisely and concretely. The bank described four criteria: build back safer, build back faster, build back potential and build back fairer.

The first three are obvious. We clearly want our economies to recover fast, be safer and be more sustainable into the future. It’s the last objective – fairness – that will inevitably be the most challenging long-term goal at both the national and international level.

Economic fallout from the pandemic is already being experienced disproportionately among poorer households, in poorer regions within countries, and in poorer countries in general.

Some governments are aware of this and are trying to ameliorate this brewing inequality. At the same time, it is seen as politically unpalatable to engage in redistribution during a global crisis. Most governments are opting for broad-brush policies aimed at everyone, lest they appear to be encouraging class warfare and division or, in the case of New Zealand, electioneering.

In fact, politicians’ typical focus on the next election aligns well with the public appetite for a fast recovery. We know that speedier recoveries are more complete, as delays dampen investment and people move away from economically depressed places.

Speed is also linked to safety. As we know from other disasters, this recovery cannot be completed as long as the COVID-19 public health challenge is not resolved.

The failure to invest in safety, in prevention and mitigation, is now most apparent in the United States, which has less than 5% of the global population but a third of COVID-19 confirmed cases. Despite the pressure to “open up” the economy, recovery won’t progress without a lasting solution to the widespread presence of the virus.

Economic potential also aligns with political aims and is therefore easier to imagine. A build-back-better recovery has to promise sustainable prosperity for all.

The emphasis on job generation in New Zealand’s recent budget was entirely the right primary focus. Employment is of paramount importance to voters, so it has been a logical focus in public stimulus packages everywhere.

Fairness, however, is more difficult to define and more challenging to achieve.

While a rising economic tide doesn’t always lift all boats – as the proponents of growth-at-any-cost sometimes argue – a low tide lifts none. Achieving fairness first depends on achieving the other three goals.

Economic prosperity is a necessary precondition for sustainable poverty reduction, but this virus is apparently selective in its deadliness. Already vulnerable segments of our societies – the elderly, the immuno-compromised and, according to some recent evidence, ethnic minorities – are more at risk. They are also more likely to already be economically disadvantaged.

As a general rule, epidemics lead to more income inequality, as households with lower incomes endure the economic pain more acutely.

This pattern of increased vulnerability to shocks in poorer households is not unique to epidemics, but we expect it to be the case even more this time. In the COVID-19 pandemic, economic devastation has been caused by the lockdown measures imposed and adopted voluntarily, not by the disease itself.

These measures have been more harmful for those on lower wages, those with part-time or temporary jobs, and those who cannot easily work from home.

Many low-wage workers also work in industries that will be experiencing longer-term declines associated with the structural changes generated by the pandemic: the collapse of international tourism, for example, or automation and robotics being used to shorten long and complicated supply chains.

Poorer countries are in the worst position. The lockdowns hit their economies harder, but they do not have the resources for adequate public health measures, nor for assisting those most adversely affected.

In these places, even if the virus itself has not yet hit them much, the downturn will be experienced more deeply and for longer.

Worryingly, the international aid system that most poorer countries partially rely on to deal with disasters is not fit for dealing with pandemics. When all countries are adversely hit at the same time their focus inevitably becomes domestic.

Very few wealthy countries have announced any increases in international aid. If and when they have, the amounts were trivial – regrettably, this includes New Zealand. And the one international institution that should have led the charge, the World Health Organisation, is being defunded and attacked by its largest donor, the US.

Unlike after the 2004 tsunami, international rescue will be very slow to arrive. One would hope most wealthy countries will be able to help their most vulnerable members. But it looks increasingly unlikely this will happen on an international scale between countries.

Without global empathy and better global leadership, the poorest countries and poorest people will only be made poorer by this invisible enemy.

About the Author:

Ilan Noy, Professor and Chair in the Economics of Disasters and Climate Change, Te Herenga Waka — Victoria University of Wellington

This article is republished from The Conversation under a Creative Commons license. Read the original article.

By George Prior

Wall Street is unbalanced, and investors are in danger of becoming complacent, warns the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The warning from deVere Group’s Nigel Green comes as U.S. stock futures indicate another strong open Tuesday for Wall Street following a long holiday weekend.

Mr Green says: “Wall Street and other stock indices around the world have been, in general terms, rallying in recent weeks as investors jump on fresh Covid-19 vaccine optimism and signals that global economies are beginning to be revived.

“There’s an over-riding and far-reaching bullish sentiment in stock markets. However, there are bonafide concerns that investors are in danger of becoming complacent.

“This is because the headline figures of rallying markets are not the best barometers of the economy right now. The upswing on Wall Street, for example, is being driven by a handful of companies all within the same sector: tech.”

He continues: “This global economic downturn is different to others as there are clear winners and losers, whereas in previous ones it has been far less clear-cut and more a question of how much all firms were impacted.

“This one has produced enormous financial benefits for some, like tech, and left many struggling and others failing completely.”

The deVere CEO says that while the booming sectors such as tech, home entertainment and online retailers might “indicate what the future, post-pandemic economy looks like”, it doesn’t reflect underlying economic conditions – and this “could catch investors out.”

He notes: “Buying an exchange-traded fund, or ETF, which are investment funds traded on stock exchanges, could expose a client to a potentially unbalanced market.”

To navigate the markets when they aren’t reflecting the slew of current poor economic data, investors are urged to work with an experienced fund manager to help them “seek the significant opportunities but to mitigate potential risks.”

Mr Green concludes: “The firms which are ‘winners’ in this downturn are over-represented on many leading global indices, including the benchmark S&P500 index.

“As such, they do not necessarily serve as the ideal economic gauge for investment decisions.

“Investors must bear this imbalance in mind.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3930; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.3960 and then resume moving downwards to reach 1.3845. Another signal in favor of further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.4010. In this case, the pair may continue growing towards 1.4095.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading at 1.2234; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.2210 and then resume moving upwards to reach 1.2315. Another signal in favor of further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1.2165. In this case, the pair may continue falling towards 1.2075.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 107.82; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 107.75 and then resume moving upwards to reach 108.25. Another signal is favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 107.50. In this case, the pair may continue falling towards 105.65.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, after forming several reversal patterns, including Harami, close to the rising channel’s downside border, XAUUSD is reversing. If later the price rebounds from the border, the uptrend may resume. In this case, the upside target may be at 1777.00.

NZDUSD, “New Zealand vs. US Dollar”

As we can see in the H4 chart, after finishing the correction and testing the rising channel’s downside border, NZDUSD has formed several reversal patterns not far from the support level and rebounded from it to the upside; right now, it is still moving upwards. The upside target remains at 0.6220.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after rebounding from the support level, forming a Hammer pattern, and reversing, GBPUSD has finished another correction and completed several more reversal patterns; right now, it is still growing. The upside target is at 1.2358. However, there is another scenario, which implies that the instrument may fall to return to 1.2010.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The US dollar has been declining against a basket of currency majors. The US dollar index (#DX) has updated local lows. Demand for risky assets has grown significantly when more and more countries start easing quarantine restrictions, which gives hope for economic recovery after the impact of the pandemic. So, in Japan, the state of emergency was canceled; in India, domestic air traffic resumes, in the Eurozone countries, more and more restrictive measures are being removed. At the same time, Novavax, an American pharmaceutical company, said it has started clinical trials of a vaccine against the COVID-19 virus.

Meanwhile, Executive Director of the World Health Organization’s Health Emergencies Programme, Mike Ryan, believes the world is still in the middle of the first wave of the COVID-19 pandemic. “Right now, we’re not in the second wave. We’re right in the middle of the first wave globally,” said M. Ryan. This is evidenced by the epidemiological situation in Central and South America, South Asia and Africa, where the number of cases is growing sharply every day. He also noted that coronavirus could show a sudden new peak.

The “black gold” prices continue to recover. Currently, futures for the WTI crude oil are testing the $34.10 mark per barrel.

Market indicators

Yesterday, the US stock market was closed due to the holiday.

The 10-year US government bonds yield has increased. At the moment, the indicator is at the level of 0.69-0.70%.

• – Consumer confidence index in the US at 17:00 (GMT+3:00);
  – New home sales in the US at 17:00 (GMT+3:00).

by JustForex

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.08955
• Open: 1.08954
• % chg. over the last day: -0.01
• Day’s range: 1.08912 – 1.09387
• 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair has been growing. The trading instrument has updated local highs. The demand for risky assets has grown amid the gradual lifting of restrictions imposed to fight the COVID-19 epidemic worldwide. Novavax, an American biotechnology company, said it has started clinical trials of the COVID-19 vaccine, which also supports the demand for risky assets. At the moment, EUR/USD quotes are consolidating in the range of 1.0905-1.0940. We do not exclude further growth of the single currency against the greenback. We expect important economic releases from the US. Positions should be opened from key levels.

The Economic News Feed for 26.05.2020:

• – US consumer confidence index at 17:00 (GMT+3:00);
• – New home sales in the US at 17:00 (GMT+3:00).

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy EUR/USD.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.0905, 1.0870, 1.0840
• Resistance levels: 1.0940, 1.0975, 1.1000

If the price fixes above 1.0940, further growth of EUR/USD quotes is expected. The movement is tending to 1.0970-1.1000.

An alternative could be a decrease in the EUR/USD currency pair to 1.0875-1.0840.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.21726
• Open: 1.21825
• % chg. over the last day: +0.05
• Day’s range: 1.21742 – 1.22683
• 52 wk range: 1.1466 – 1.3516

Purchases prevail on the GBP/USD currency pair. The British pound has updated local highs. The demand for risky assets has grown significantly. At the moment, GBP/USD quotes are testing the supply zone of 1.2275-1.2300. The 1.2225 mark is already a “mirror” support. The technical pattern signals a further growth of the GBP/USD currency pair. Tensions between Washington and Beijing are still in the focus of investors’ attention. We recommend opening positions from key levels.

Indicators signal the power of buyers: the price has fixed above 100 MA.

The MACD histogram is in the positive zone and above the signal line, indicating the bullish sentiment.

Stochastic Oscillator is in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.

Trading recommendations

• Support levels: 1.2225, 1.2190, 1.2160
• Resistance levels: 1.2275, 1.2300, 1.2335

If the price fixes above 1.2275, further growth of GBP/USD quotes is expected. The movement is tending to 1.2300-1.2330.

An alternative could be a decrease in the GBP/USD currency pair to 1.2200-1.2170.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.39882
• Open: 1.39773
• % chg. over the last day: -0.07
• Day’s range: 1.39123 – 1.39853
• 52 wk range: 1.2949 – 1.4668

USD/CAD quotes have been declining again. The trading instrument has updated local lows. At the moment, the USD/CAD currency pair is testing the 1.3910 mark. The 1.3970 mark is the key resistance. The greenback demand has weakened. The loonie is supported by the positive dynamics of the “black gold” prices. The Canadian dollar has the potential for further growth against the US currency. Positions should be opened from key levels.

We recommend paying attention to economic reports from the US.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, indicating the bearish sentiment.

Stochastic Oscillator is in the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.3910, 1.3870
• Resistance levels: 1.3970, 1.4000, 1.4045

If the price fixes below 1.3910, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3870-1.3850.

An alternative could be the growth of the USD/CAD currency pair to 1.4000-1.4020.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 107.572
• Open: 107.664
• % chg. over the last day: +0.08
• Day’s range: 107.663 – 107.922
• 52 wk range: 101.19 – 112.41

The technical pattern is still ambiguous on the USD/JPY currency pair. A trading instrument is being traded in a flat. At the moment, USD/JPY quotes are testing the supply zone of 107.90-108.05. The 107.65 mark is the nearest support. The demand for “safe-haven” currencies has weakened significantly. The USD/JPY currency pair is tending to grow. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The Bank of Japan does not exclude the introduction of additional economic stimulus measures to mitigate the effects of the COVID-19 pandemic.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, indicating the bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/JPY.

Trading recommendations

• Support levels: 107.65, 107.35, 107.10
• Resistance levels: 107.90, 108.05, 108.30

If the price fixes above 107.90, USD/JPY quotes are expected to rise. The movement is tending to 108.10-108.40.

An alternative could be a decrease in the USD/JPY currency pair to 107.40-107.20.

by JustForex